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Competitor Risk Assessment
Evaluating the risks posed by competitors' actions, such as potential market entry, aggressive pricing, or strategic partnerships, and their impact on your market position.
Implications
The evaluation of potential risks posed by competitors, including market entry threats, price wars, or innovation, to inform strategic decision-making and risk mitigation efforts.
Example
Example: A financial services firm conducts a competitor risk assessment to evaluate the threat posed by a fintech startup entering its market with disruptive technology.
Related Terms
Different from general risk assessment, which may include a wide range of business risks, competitor risk assessment focuses specifically on the risks associated with competitors' actions.
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